More than 130 homes left half-finished by the collapse of modular housebuilder Ilke Homes at the Meadow Grange development in Southend-on-Sea, Essex, are set to be part-demolished before construction can restart.
The project, which ground to a halt last June when Ilke entered administration, has been stuck in limbo for over a year as a replacement contractor has yet to be appointed.
The Guinness Partnership, the housing association overseeing the project, has revealed that the partially constructed homes will need to be taken down to floor slab level before any new contractor can take over.
The Meadow Grange development was originally envisioned as a “high-quality residential scheme” of 221 homes, located on greenfield land near Fossetts Way. A quarter of the homes were designed to generate their own energy, part of Ilke Homes’ ambition to create sustainable, modular housing. Construction began in November 2022, with an initial completion target of autumn 2024.
However, the collapse of Ilke Homes last summer has thrown the project into disarray. The modular housebuilder, established in 2017 to accelerate housing delivery, cited “volatile macroeconomic conditions and issues with the planning system” as factors leading to its downfall.
According to its last published accounts, Ilke turned over £12.7 million for the financial year ending in March 2021 but reported a pre-tax loss of £33.9 million.
The collapse has left a significant financial fallout, with Homes England, a government agency that backed Ilke, facing a potential loss of £64.5 million on its investment. Despite private equity support, Ilke’s business model couldn’t withstand the challenging economic environment, leading to the closure of its Knaresborough factory and the suspension of multiple projects across the UK.
While some of Ilke’s other developments have resumed, including the Birch Fields affordable housing scheme in Nottingham, the Meadow Grange project has remained in a state of uncertainty.
The decision to partially demolish the unfinished homes marks the first step toward reviving the site, though it adds further delays and costs to the already beleaguered project.
Ilke Homes was seen as a promising solution to the UK’s housing crisis, with its modular construction method designed to speed up delivery and reduce costs. However, the company’s collapse raises questions about the viability of modular housing on a large scale, particularly in the face of economic instability and planning challenges.
As demolition begins and the search for a new contractor continues, the future of the Meadow Grange development remains uncertain. The delays are a blow to both the local community and the housing association, which had hoped the project would contribute to meeting the region’s affordable housing needs.
For now, the focus is on restarting construction and finding a way to complete the homes, bringing some resolution to a project that once held so much promise but now faces a long road to recovery.
